The Mesa City Council will meet this week to discuss entering into a memorandum of understanding with a developer to build a new 100-unit apartment complex and multistory parking garage on the site of a City-owned surface parking lot at the SEC of Pepper Place and MacDonald.
Developer Habitat Fenix, LLC submitted an unsolicited proposal to the City to develop Eco Mesa East on Mesa’s “Green Lot,” a 105-space surface parking facility.
Habitat Fenix is a partnership between Habitat Metro—developer of the existing Eco Mesa apartment community—and Fenix Private Capital Group. Eco Mesa was built on the City’s former “Purple Lot.” The success of that project led the City to consider the new proposal.
Under the Eco Mesa East plan, the developer would produce a minimum of 100 luxury market rate apartments, 2KSF of commercial space and a new parking garage.
The proposed agreement calls for Mesa and Habitat Fenix to enter into a Government Property Lease Excise Tax incentive agreement, under which property taxes for the site would have an eight-year abatement period.
For its part, the developer would grant the City perpetual use of 74 continuous spaces in the new garage and install conduits for five electric vehicle charging stations. It would also have to design and construct a public plaza space, make a monetary contribution for Mesa to use toward affordable housing or homelessness programs, and include a potential solar project on top of Mesa’s Pepper Place parking garage.
Possible additional considerations by the City could provide for reimbursements for infrastructure improvements that benefit the overall downtown area.
Under the memorandum of understanding, Mesa will not solicit or entertain offers or proposals for the site while the MOU is in effect. The initial MOU term runs through Oct. 31, but it can be extended until Jan. 31.
If the agreements are approved, Mesa will sell the site to the developer at market value. (Source)
